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VMware to Acquire Network Virtualization Vendor


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VMware, Inc., a provider of virtualization and cloud infrastructure, says it has signed a definitive agreement to acquire Nicira, Inc., a network virtualization vendor. VMware will acquire Nicira for approximately $1.05 billion in cash plus approximately $210 million of assumed unvested equity awards. The acquisition is subject to regulatory approvals and other customary closing conditions. The parties expect the acquisition to close during the second half of 2012, according to VMware. The acquisition has been approved by the boards of directors of both VMware and Nicira and the stockholders of Nicira.

“VMware has led the server virtualization revolution, and we have the opportunity to do the same in data center and cloud networking,” Paul Maritz, chief executive officer of VMware, said in a prepared statement. “The acquisition of Nicira adds to our portfolio of networking assets and positions VMware to be the industry leader in software-defined networking.”

VMware also says the acquisition will expand its networking portfolio, which currently includes VMware vSphere virtual switching, VMware vCloud Director networking, vShield Network and Security software defined services, and the VXLAN protocol. The goal is to provide a full suite of software-defined networking capabilities for virtualizing the network – from virtual switching to virtualized layer 3-7 services, the vendor adds.

More information is available at the VMware site.


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